Democratic control of Congress is seen as likely to produce Washington gridlock
that will restrain fiscal spending and, alongside potential AI regulation that
could slow U.S. growth, lower the need for further rate hikes. U.S. Treasuries
rose on Wednesday: the 10-year yield fell about 5bps to 4.90%; the 2-year yield
slipped to 4.5458%, near a two-month low. Equities advanced on softer rate‑hike
expectations.
